An upstart phone company has only two potential large customers, Firm A and Firm B.
Firm A's monthly demand for phone calls is Q1 = 2,800 - 200p (with p measured in cents) and Firm 2's is Q2 =5,000 - 100p. The marginal cost of providing a phone call is 6 cents.
Assuming the phone company has to charge the same monthly rental fee and unit price to all its customers, at what level should it set these charges?